Slide 1: Maintaining Momentum: FY24 Results
Maintaining Momentum FY24 Results July 2024
Slide 2: FY24 Performance Highlights
FY24 Performance Highlights Momentum maintained. Platform revenue up 43% on last year; total revenue up 28% Significant double-digit revenue growth in US, UK and Europe 260 new client wins Net Revenue Retention Rate of 100% on platform revenue Gross profit margin increased to 87% Adjuste
Slide 3: James Gregory, Chief Executive Officer
James Gregory Chief Executive Officer
Slide 4: We help the world's largest advertisers make confident creative decisions
i} BS ey " GOV me hal We help the world’s largest advertisers make confident creative decisions that lead to transformational business results
Slide 5: Source | Clayton Christensen, Harvard Business School
Source | Clayton Christensen, Harvard Business School © System1 Group PLC 5
Slide 6: We are a marketing decision-making platform
predicts and improves marketing effectiveness… We are a marketing We predict and improve decision-making platform marketing effectiveness
Slide 7: Through our 'predict your' and 'improve your' offering
… through our ‘predict your’ and ‘improve your’ offering … Data Data-Led Bespoke Consultancy Consultancy (Predict Your) (Improve Your) © System1 Group PLC 7
Slide 8: Predictions delivered through an automated platform
… our predictions (and some improvements) are delivered through an automated platform … Predict Your… Improve Your… Project Management Set up Programming Panel Data processing Reports Data Led respondents Consultancy Forward translation Back translation Key: Automated Process Consultancy © System1 G
Slide 9: Results provided on a self-serve platform
… with results provided to customers on a self-serve platform … © System1 Group PLC 9
Slide 10: Platform and Products based on world leading IP, methodologies and technologies
Platform and Products based on world leading IP, methodologies and technologies Ads | Brands Survey Emotions measured Markets Ideas tested Responses through FaceTrace © System1 Group PLC 10
Slide 11: 13 offices globally, tests in 81 markets
With 13 offices around the globe, we understand locality & can run tests in 81 markets London Hamburg Chicago Paris Rotterdam New York Lausanne Los Angeles Singapore São Paulo Sydney © System1 Group PLC 11
Slide 12: Our USP is predictiveness, translating emotion into business results
Our USP is predictiveness, translating emotion into business results Most Predictive CMO C-Suite Speed Price
Slide 13: What makes our metrics so accurate?
What makes our metrics so accurate? System 1 and System 2: Kahneman | ‘Thinking, fast and slow’ Percentages: Zaltman | ‘How Customers think; Essential insights into the Mind of the Market’
Slide 14: Platform revenue grew year on year driving top line growth
Platform revenue grew year on year driving top line growth Platform Bespoke Consultancy 30 5.2 25 20 6.0 £m 15 24.8 10 17.4 5 0 FY23 FY24 © System1 Group PLC 14
Slide 15: Quarter on quarter platform revenue growth in FY24
Underpinned by quarter on quarter platform revenue growth in FY24 9 Data Data-led consultancy 8 7 6 Revenue £m 5 4 3 2 1 0 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 © System1 Group PLC 15
Slide 16: Revenue growth continued in Q1 FY25
…which continued in Q1 FY25 10 Data Data-led consultancy 9 8 7 Revenue £m 6 5 4 3 2 1 0 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 provisional © System1 Group PLC 16
Slide 17: 100% Platform Net Revenue Retention in FY24
We delivered 100% Platform Net Revenue Retention in FY24 25 20 New client revenue Platform Revenue £m 15 10 NRR 100% 5 0 FY23 FY24 © System1 Group PLC 17
Slide 18: We are growing in the USA & UK
We are growing in the USA & UK We work with 5 of the top 10 USA advertisers & 7 of the top 10 UK advertisers Rank Parent Company Rank Parent Company Sources : USA: Visual Capitalist | UK: Statista Note: System1 are not permitted to name the advertisers we work with © System1 Group PLC 18
Slide 19: Consumer Strategy
nsumer Strategy Create with Confi
Slide 20: Chris Willford, Chief Financial Officer
Chris Willford Chief Financial Officer
Slide 21: Profit turnaround versus FY23 shows benefit of scalable business model
Profit turnaround versus FY23 shows benefit of our scalable business model FY24 FY23 Change £m Change % Platform Revenue 24.8 17.4 +7.4 +43% Total Revenue 30.0 23.4 +6.6 +28% Cost of Sales (3.9) (3.7) +0.2 +6% Gross Profit 26.1 19.7 +6.4 +32% Statutory Profit Before Tax 3.1 0.7 +2.4 +333% Profit aft
Slide 22: Continued momentum in Ad Testing
…with continued momentum in Ad Testing 25 FY23 FY24 20 Revenue £m 15 10 5 0 Comms Brand Innovation Product Group © System1 Group PLC 22
Slide 23: Strong revenue growth in UK, US and Europe in FY24
Strong revenue growth in UK, US and Europe in FY24 stabilisation of business in APAC and LatAm +43% +22% +29% +7% +4% © System1 Group PLC 23
Slide 24: Key Performance Indicators are moving in the right direction
Our Key Performance Indicators are moving in the right direction KPIs FY24 FY232 Platform Revenue % total Revenue 82 74 Platform Revenue growth % +43 +40 Gross Profit % Revenue 87 84 Adjusted EBITDA % Revenue 15 7 “Rule of 40”1 57 47 Net cash £m 9.6 5.7 1 Platform Revenue growth % + Adjusted Group E
Slide 25: Scaling effect has kicked in FY24 v FY23
Scaling effect has kicked in FY24 v FY23 Revenue £m Adj EBITDA £m restated 35 Adj EBITDA % (Right Scale) 30% 30 25% 30 £ EBITDA Revenue and EBITDA £m 25 20% 2.75 x EBITDA Margin 20 23 15% 15% 15 10% £ Revenue EBITDA % 10 7% 1.28 x 2.16 x 5 4.4 5% 1.6 0 0% FY23 FY24 © System1 Group PLC 25
Slide 26: The scaling effect to come (Illustrative)
The scaling effect to come | Illustrative Revenue £m Adj EBITDA £m restated 70 35% Adj EBITDA % (Right Scale) 60 30% 30% 60 £ EBITDA 50 25% 4.1 x Revenue and EBITDA £m EBITDA Margin 40 20% 15% 30 15% 30 18.0 £ Revenue EBITDA % 20 10% 2.0x 2.05 x 10 5% 4.4 0 0% FY24 At Scale (2x) Note: This chart is
Slide 27: On track to meet our medium-term goals
…and we believe we are on track to meet our medium-term goals KPIs FY24 Goal at Scale Platform Revenue % total Revenue 82 95% Platform Revenue growth % 43 10-20% Gross Profit % Revenue 87 >85% Adjusted EBITDA % Revenue 15 >30% “Rule of 40” 57 >40% © System1 Group PLC 27
Slide 28: Proposed FY24 dividend 5p per share
Proposed FY24 dividend 5p per share £0.64m cash outlay AGM 25 September 32% of FY24 PAT Ex date 26 September Within 30-40% policy range Record date 27 September Annual dividend envisaged – Payment 18 October no interim © System1 Group PLC 28
Slide 29: Opportunities Ahead
Opportunities Ahead System1
Slide 30: There are Reasons to Believe
There are 3 Reasons to Believe Innovation USA World’s Largest (Idea Testing) Advertisers © System1 Group PLC 30
Slide 31: Massive headroom in the pre-testing market
There is massive headroom in the pre-testing market and we are playing in growth areas Total Addressable Market $20.43bn Ad Pre Testing Innovation Testing Brand Tracking $2.46bn $12.02bn $5.95bn Source | Global Market Research 2023 | ESOMAR © System1 Group PLC 31
Slide 32: Five Steps to 5-Star Innovation
Five Steps to 5-Star Innovation System! offer a solution to help you Create with Confidence at each stage of the innovation development process System1 Test Your Distinctive Assets+ Test Your Brand 54,000+ Test Your database Innovation Test Your Test Your Innovation Innovation Guidance
Slide 33: Test Your Innovation
x) Test Your Innovation = 0GO@S8O0 Brand Concepts Product Product Packs Logos Positionings Claims Names (Idea Testing) System
Slide 34: Test Your Innovation: Early Stage and Later Stage
x) Test Your Innovation Early Stage Later Stage ( \ © © Text only Text + Full concept + mood board pack imagery imagery System
Slide 35: Significant opportunity in the US as the biggest market
We have a significant opportunity in the US as the biggest market $71bn 55% 29% $129bn Global Insights Industry Key Industry % of revenue FY24 % of revenue Source | Global Market Research 2023 | ESOMAR © System1 Group PLC 35
Slide 36: The world's largest advertisers buy across product groups
The world's largest advertisers buy across product groups … 13% of clients 45% of total revenue © System1 Group PLC 36
Slide 37: … and across product types
… and across product types Data Data-led Consultancy 40% of clients 79% of total revenue Bespoke Consultancy © System1 Group PLC 37
Slide 38: Questions?
Questions? System1